The State Public Sector Disinvestment Commission has recommended to the
State Government to wind up World Bank Funded Punjab Health Systems Corporation
(PHSC). It vindicates the stand of Insaaf International since the beginning
of this project that PHSC was created by domestic rulers to engulf the
funds taken as loan from the World Bank. Agenda of the World Bank was
to heap the debt without going into viability and impact of this project
on the poor people especially women, to serve its hidden agenda of socio-economic
subjugation. In my meeting with World Bank official in 1998 in Washington
DC, I had pointed out that the setup and system including the officials
to manage the PHSC remain the same as the previous state health sector
which was projected as failure necessitating formation of PHSC, clearly
indicating that the target of neither World Bank nor the State Government
was to improve health care system.

Now when the loan
installments are almost over and corrupt officials and rulers have pocketed
the money, the PHSC is recommended for winding up. People have ended up
with more debt and worsened health services.
Insaaf International will soon launch a campaign for accountability
of the failure of the project and fixing of responsibility at state and
World Bank level. Insaaf international time and again brought the malfunctioning
and adverse effects of PHSC on health care services but the visiting World
Bank Team always showed its 'satisfaction', covered in the media. Recently,
the World Bank extended the loan as result of its 'happiness' over progress
of PHSC.
Insaaf International in coordination with World Bank Bond Boycott (Center
For Economic Justice, Washington DC) had released a report " World
bank Funded Health Care- A Death certificate for Poor" in September
2001 exposing the functioning of PHSC.

Background
Through a project called India-State Health Systems Development Project
II, in which the World Bank lent US$106.1 million to India for health
sector reforms in Punjab, the Punjab Health Systems Corporation (PHSC),
a Para-state health organization, was created to replace the existing
public health system.
The stated goal for the PHSC project was to improve the performance of
the health care system through increased quality and effectiveness as
the state health services were projected as failure. The ultimate goal
of the project was to improve the health status of the people, especially
women and the poor. What it has done is exactly the opposite, mainly because
of the changes required by the World Bank in the structure of "user
fees" charged for health services.

The Times of India dated 4.6.02 reported that Punjab Health Systems Corporation
(PHSC), Punjab Financial Corporation (PFC), Sugarfed, PAIC, Punsup and
PRTC have been recommended to be wound up. In case of other major corporations
like Markfed, Milkfed, PSEB and PSCB and others, which are to be retained,
the commission has recommended that these be restructured by right sizing
through a Voluntary Retirement Scheme (VRS) or retrenchment of excess
staff.

In case of procurement agencies like Markfed and Punjab State Warehousing
Corporation (PSWC) the allocation of mandis for procurement, which are
reshuffled every season, and allotment of rice mills in case of paddy,
are to be made permanent to curb misappropriation of paddy, a serious
problem in the state. Two other state procurement agencies, Punjab Agro
Industries Corporation and Punjab State Civil Supplies Corporation (Punsup)
have been recommended for winding up.

In case of Punsup all its assets are to be handed over to the food and
civil supplies department. In case of PAIC the commission has recommended
that it stop procurement activities pending its closure. The commission
has recommended the restructuring of the Punjab Infrastructure Development
Board (PIDB) into a trust to administer the Punjab Infrastructure Development
Fund (PIDF) and the Punjab Infrastructure Initiative Fund (PIIF). The
renamed and reoriented Punjab State Industrial Development Corporation
(PSIDC) is to function as the secretariat of the trust. PSIDC is to be
renamed as Punjab State Infrastructure and Industrial Development Corporation
(PSIIDC).

In case of Punjab Health Systems Corporation (PHSC) the commission has
recommended that it be wound up when the funds of the project stand utilised.
Gains of the project to be consolidated by the taking over of PHSC assets
and liabilities by the directorate of health services and family welfare.